WeWork India shares list flat on bourses; should you buy, sell or hold?

WeWork India IPO listing: Shares of WeWork India listed at ₹650 on the NSE and ₹646.50 on the BSE, almost flat against the issue price of ₹648 per share

WeWork India Share Price: Flexible workspace operator WeWork India Management Services disappointed investors with a lacklustre listing on the domestic bourses on October 10, following the completion of its ₹3,000-crore initial public offering (IPO).

 

Shares of WeWork India listed at ₹650 apiece on the NSE, and ₹646.50 per share on the BSE, almost flat against the issue price of ₹648 per share. 

 

The debut was largely in line with grey market expectations. Ahead of the listing, shares were quoting around ₹648 apiece in the unofficial market, mirroring the IPO price, according to sources tracking grey market activity.  ALSO READ | WeWork India IPO: Rapid growth, hidden risks; what investors should know 

 

Should you buy, sell or hold WeWork India shares?

he slow start of WeWork India shares, Ravi Singh, independent research analyst, said, shows that the market isn’t fully confident yet about the company’s profitability and future growth in the co-working space business.

 

For the investors who applied just to make some quick money, Singh believes it’s better to book profits and move out for now. "But if you believe in the company’s long-term story and can handle a bit of risk, you may hold on," said Singh, adding that "the brand is strong and demand for flexible offices is slowly coming back, though it might take time for steady profits to show up. For now, new investors should wait and watch how the stock performs over the next few quarters."     SimranJeet Singh Bhatia, senior equity research analyst at Almondz Global, has recommended avoiding the stock due to ongoing corporate governance concerns. Although the company’s financials have improved, investors should remain cautious and keep a close watch on governance issues.

 

Notably, in FY25, the company’s financial performance showed significant improvement. Revenue increased by 17 per cent year-on-year to ₹1,939 crore. EBitda margin stood at 65 per cent in FY25. “The company has achieved a remarkable turnaround, posting a net profit of ₹128.19 crore in FY25 compared to a loss of ₹135.77 crore in FY24,” highlighted Bhatia.

WeWork India IPO details

The company’s ₹3,000-crore issue comprised an entirely offer-for-sale (OFS) of 46.3 million equity shares. The offer was open between October 3 and October 7, at a price band of ₹615–₹648 per share, with a lot size of 23 shares.

 

Brokerages had offered mixed recommendations on the issue. Anand Rathi Research advised subscribing for the long term, while Angel One and SBI Securities maintained a neutral stance.

 

The IPO witnessed a muted initial response, reflecting cautious investor sentiment. However, qualified institutional buyers (QIBs) stepped up on the final day, helping the issue achieve full subscription.

 

At close, the offering received bids for 2.92 crore shares against an offer of 2.54 crore shares, translating into an overall subscription of 1.15 times, according to BSE data. The QIB portion was subscribed 1.79 times, while non-institutional investors (NIIs) and retail investors subscribed 23 per cent and 61 per cent, respectively, of their reserved portions.   ALSO READ | GMP shows upbeat mood for Canara HSBC Life IPO; here's all you need to know 

The basis of allotment was finalised on October 8, with the company fixing the issue price at ₹648 per share.

 

MUFG Intime India acted as the registrar to the issue. The book-running lead managers were JM Financial, ICICI Securities, Jefferies India, Kotak Mahindra Capital Company, and 360 ONE WAM.

 

Since the IPO was a pure offer-for-sale, WeWork India will not receive any proceeds from the issue.

 

“Our company will not receive any proceeds from the offer, and all proceeds will go to the selling shareholders after deduction of offer-related expenses and taxes,” WeWork India said in its Red Herring Prospectus (RHP).